World economic crisis and the Islamic Economy: Realities and Illusions

Global economic crisis is the event which outlined the framework very well, especially the profile of the leading geopolitical and geo-economic centers on the planet. The collapse of several leading financial institutions in the U.S. cause a domino effect in the adjacent to these economies. Logically, this proved to be the euro area and Japan. Recession in these economic region is stronger as their economic development is practical for the most powerful economy in the world – the U.S..

Subsequent developments in the Arab and Islamic capital market and commodity demonstrate once again that the economy has its own rules and logic. It can not prevail over politics, or at least – is not able to fight artificial economic principles. Changing the performance of Arab stock exchanges, particularly the Gulf, is in no way different from those in highly developed countries. Until now, experts reported losses exceeding 180 billion dollars in the Gulf. In net terms the largest they have in Saudi Arabia – about 150 billion, a percentage – in the United Arab Emirates. The same applies to the largest market outside the Arab Gulf area – Egypt. The value of the Egyptian national index over the past few days were reduced by about 10% per day. However, state authorities refused to take special measures, de, as all officials claimed that the Treasury has enough cash to get to the bankruptcy of the banking system.

The resulting economic events in the Arab world give reason to make some basic conclusions:

1. The economies of most developed Arab countries – those in the Gulf are very closely connected with the world and especially in the U.S. economy. In fact, they have her appendix. The accumulated revenue from the oil capital resources (several hundred billion dollars), however, is so large that whatever happens in some of the centers of the world economy, this huge mass of money can offset the impact. By calculations of experts, the depth of the crisis in the U.S. and the Gulf States is proportionate. Arab financiers have set October 6 as “black Monday” for local farms. In this day only in the Gulf “have vanished around 150 billion dollars.” U.S. lawmakers were forced to allocate 700 billion dollars to prevent the collapse of the national economy. Most likely Congress will grant a new $ 150 billion for the same needs. For countries exporting oil such measures will be needed despite the working capital of the local stock exchanges.

2. At the beginning of the crisis emerged a number of analysis and forecasts according to which the recession in the Arab world would not be significant due to the existence of so-called. “Islamic banking system. Its adepts argued that it is built on principles that create a fully independent, the global economy and the traditional banking and financial system. They constantly publish statistical data, according to Sharia finance is increasingly winning positions. Scientific forum in Paris, in 2008 it was noted that the Islamic banking system, has working capital of 800 billion dollars. It is expected that in 2010 it reached 1.4 trillion. The size of the crisis in the richest and most obviously Islamic countries such as the Gulf countries, outlined the contours of the real and true meaning of “Islamic economics”. If she has a burden, it is relatively modest and is mostly a political dimension.

It is noteworthy that the quotes for “benefits” of the Islamic economy have disappeared from the major Arab financial publications. Some of them, frankly secular in orientation, they were not even pay attention. At the same time, Islamic preachers economically manipulative note speeches on the virtues of economy system of leading European editions, “Journal des finances”. Mentions that the French Higher Council for Financial Supervision issued the license under which the country can apply Islamic principles in financial transactions on the local market. Moreover, it was reported that one of the universities of Strasbourg considered to begin training students in the subject “Islamic economy”. All these measures reflect the desire of the French authorities to attract more investment from Gulf states, and not reflect the existence of ideological or religious motives.

Arouse interest in the answer to the question of whether Paris wants to shift the position of London from the fringes of Islamic banking. So far, this system is applied by individual intitutsii in 51 countries. Understandable reasons in the first four centers are located in the Gulf – Dubai, Abu Dhabi, Manama and Doha. British capital ranked fifth in the world with a concentration of Islamic banking institutions.